Which of the Following Best Describes Agents and Brokers

question 37

Multiple Choice

Which of the following best describes agents and brokers?

• A)They have a great deal of control and risk invested in the goods.
• B)They represent only manufacturers in sales situations.
• C)They generally are on salary with the manufacturer.
• D)They do not take title to merchandise.

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders but is kept by the company for reinvestment or debt payment.

End-Of-Period Spreadsheet

A tool used in accounting to compile all balances and adjustments at the end of an accounting period before the preparation of financial statements.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, used to keep track of all business transactions in a company's books.

Revenues

Income generated from normal business operations and other business activities.